January 16, 2025

AI for your health

Hi there, 

Here is this week's Hot or Not.

Hot: AI in digital health

AI’s share of digital health investment activity is on the rise. 

In 2024, AI-focused companies captured 42% of digital health funding and 31% of deals — both record highs.

Both of the top AI deals in digital health went to drug development startup Xaira Therapeutics.

These deals point to a broader funding surge for biologics developers using AI, highlighting AI’s ability to predict more complex therapeutics.

Dive deeper into the trend in our AI in drug discovery deep dive.

Not: Digital health deal count

Globally, digital health deal count has declined for 3 years straight.

In 2024, the space saw 1,225 deals — a 23% YoY drop and the lowest count since 2014.

Europe saw the sharpest decline, with deal count falling 29% YoY, followed by the US and Asia, each down 19%.

Explore the latest trends in digital health in our State of Digital Health 2024 Report.

Hot: Defense tech markets

We track 1,400+ unique tech markets on the CB Insights platform. 

In industrials, 4 out of the top 5 trending markets based on Mosaic startup health scores are in defense tech:

• Integrated defense connectivity platforms
• Defense & national security AI copilots
• Electronic warfare (EW) ground systems
• Tactical unmanned underwater vehicles

Defense tech has been on the rise (funding and deals surpassed 2023 levels in 2024) as technology becomes increasingly critical to warfare (see unmanned vehicles). 

CB Insights customers can access market leaderboards here. Interested in learning more? Connect with us.

Not: Blockchain maturity

Crypto's got its hype back.

But CB Insights' Commercial Maturity scores show that recently funded blockchain startups are still in the early phases of bringing their products to market. 

In comparison to AI startups raising funding, blockchain startups are behind in deploying their products commercially. 

See the trend here.

The +1

Trippy. That's one chaotic barcode.

I love you.

Anand

@asanwal 

Co-Founder & Exec Chair

P.S. We surveyed 50 senior strategy leaders to uncover how they’re adopting genAI. Want to know what we found? Join our analysts on January 28.

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